Nope. You are exactly correct. The way to approach removing bias in all personal financial decision making, algorithmic or otherwise, is to only allow it to be based on previous individual financial behavior.

The solution is pretty much that simple. I would argue that all correlative models dealing with human beings will always be discriminatory.

Will loans become more expensive for many people? Sure. But that is the true solution. Sometimes the right decision is simple but unconfortable. In my opinion, this is one of those times.